WALLENIUS Wilhelmsen has reported total EBITDA of US$478 million for the third quarter of 2023, a 9% increase on the same period last year.

The company attributed the growth in total EBITDA to its shipping segment, which contributed US$392 to the group total.

Wallenius Wilhelmsen said the result for shipping was supported by higher net rates and improved customer mix, but offset by a decline in fuel surcharges and volumes.

However, it said waiting times at key ports continued to create challenges. During the quarter, some 9% of the available trading days were caught up in congestion.

Total revenue across the company’s three segments was down 3% year on year, to US$1.3 billion in the third quarter of 2023.

“With another positive quarter behind us, we expect EBITDA in the second half of 2023 to be at or above what we delivered in the first half, as vessel utilisation remains high, and we see solid demand for our logistics services,” Wallenius Wilhelmsen president and CEO Lasse Kristoffersen said.

“Moreover, the contribution from government services remains strong.”

Mr Kristoffersen said efforts to reduce carbon emissions were paying off; the company is seeing emissions stabilising at lower levels.

“An additional effect is a recurring reduction in fuel consumption and fuel cost,” he said.

“Further, we continue to strengthen the fundamentals for future earnings by renegotiating contracts at higher rates.

“To secure attractively priced tonnage, we have exercised purchase options under our long-term charter agreements and turned the LOI into contracts for four firm and eight optional vessels.”

Wallenius Wilhelmsen said its logistics segment delivered “solid” EBITDA in Q3 driven by performance in auto.

It also reported it was a “very strong” quarter for the government segment with the largest EBITDA gain quarter-over-quarter.

Wallenius Wilhelmsen attributed this to an improvement in cargo mix and continued high US government demand.